Asian shares retreated on Thursday after the US Federal Reserve (Fed) raised rates, as expected, and kept most of its guidance for additional hikes next year, dashing investor hopes for a more dovish policy outlook, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.34%, with Australian shares dropping as much as 0.65% to two-year lows, the newswire said.

Hong Leong IB Research in a traders' brief said that in the US, recent market skittishness was largely attributed to concerns over sluggish global economic expansion, escalating US-China trade tensions and growing worries on the Fed's plan to raise interest rates despite escalating headwinds.

"Overall, Wall Street is expected to experience extended bouts of volatility as the Fed delivered a less dovish outlook overnight. Key resistances are 24,000-24,300 while supports are near 22,800-23,000.

"On the local front, sentiment is likely to remain edgy as the domestic and external headwinds should prevail.

Oil prices fell on Thursday to erase most of their gains from the day before, resuming declines seen earlier in the week amid worries about oversupply and the outlook for the global economy, according to Reuters.

The front-month US crude contract had fallen 78 US cents (RM3.26), or 1.6%, to US$47.39 per barrel by 0129 GMT, nearly offsetting gains of 96 US cents chalked up on Wednesday, it said.

Sapura Energy has also drawn investors' attention in recent days after it had on Nov 29 announced that it had secured shareholders' approval for its proposed rights issue to raise up to RM3.98 billion to pare debt. The group said it had received institutional investors' support for the exercise.

On Aug 24, theedgemarkets.com reported that the oil and gas services provider had proposed a rights issue of new ordinary shares besides Islamic redeemable, convertible preference shares (RCPS-i) in the company to raise up to RM3.98 billion to reduce borrowings.

The rights issue is an important part of the group's recapitalisation exercise to pare down its huge borrowings of RM14 billion.

On Dec 14, Sapura Energy announced that its single largest shareholder Tan Sri Shahril Shamsuddin, who is also the president and CEO, has decided to put in an additional RM100 million to subscribe in full for the rights issue that is sweetened with free warrants.

Sapura Energy had also said it received irrevocable undertaking from its direct substantial shareholder Sapura Technology Sdn Bhd for RM400 million worth of rights shares, and from Jurudata Sdn Bhd, which will also be applying for excess rights shares besides its entitlement.

The rights issue of up to 2.4 billion RCPS-i is at 41 sen each is on the basis of two RCPS-i for every five shares held.

LONDON (Dec 20): Oil prices fell more than 4% on Thursday, hitting their lowest in more than a year on worries about oversupply and the outlook for energy demand as a US interest rate rise knocked stock markets.

Stock markets dropped worldwide after the US Federal Reserve raised rates and maintained most of its guidance for additional hikes over the next two years, dashing investor hopes for a more dovish policy outlook.

US light crude oil fell US$2.35 a barrel, or 4.9%, to a low of US$45.82, before recovering a little to around US$46.50 by 1020 GMT.

North Sea Brent dropped down US$2.60, or 4.5%, to a low of US$54.64 a barrel, its lowest since September 2017.

Both major oil futures contracts rallied sharply on Wednesday but are now at or close to their lowest levels for over 15 months, more than 30% below multi-year highs reached at the beginning of October.

"Investors quickly moved their attention to deteriorating fundamentals in the oil markets, including more signs of slowing economic growth next year, record production and the lack of confidence with OPEC's pledge to curb production."

The Organization of the Petroleum Exporting Countries and other oil producers including Russia agreed this month to curb output by 1.2 million barrels per day (bpd) in an attempt to drain tanks and boost prices.

But the cuts will not happen until next month, and production has been at or near record highs in the United States, Russia and Saudi Arabia.

Saudi Energy Minister Khalid al-Falih said he expected global oil stocks to fall by the end of the first quarter, but added that the market remained vulnerable to political and economic factors as well as speculation.

OPEC plans to release a table detailing voluntary output cut quotas for its members and allies such as Russia in an effort to shore up prices, OPEC Secretary-General Mohammad Barkindo said in a letter seen by Reuters on Thursday.

US inventory data offered some support.

US crude inventories fell by 497,000 barrels in the week to Dec 14, the US Energy Information Administration said, smaller than the decrease of 2.4 million barrels analysts had expected.

Distillate stockpiles, which include diesel and heating oil, dropped by 4.2 million barrels, the EIA said, versus expectations of a 573,000-barrel increase.

Distillate demand rose to the highest since January 2003, which bolstered buying, particularly in heating oil futures, the market's proxy for diesel.

KUALA LUMPUR (Dec 20): The Ministry of Finance (MoF) has provided a special allocation of RM77 million to assist the settlers of Federal Land Development Authority (FELDA) to settle overdue payments in the current year.

In a statement today, Minister of Finance Lim Guan Eng said the ministry has noted FELDA's critical cash flow issue this year, which has come to the attention of Prime Minister Tun Dr Mahathir, who directed the assistance to be given.

The allocation of RM77 million is to assist FELDA settlers to settle outstanding payments, which include mortality payments totalling RM1.2 million to beneficiaries of 120 deceased settlers, payment of arrears to Felda Technoplant Sdn Bhd for the land development operation of RM43 million, as well as subsistence and advances for replanting amounting to RM32.8 million for the benefit of 38,000 people.

The MoF will channel the allocation for 2018 of RM77 million to the Ministry of Affairs Economy as it regulates FELDA.

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